Honda boosted its net profit forecast to 545 billion yen from an earlier figure of 530 billion yen for the fiscal year ending March 2018.

It also lifted its fiscal year operating profit and revenue outlooks.

"Honda's profit pales compared to figures last year when it booked a one-time gain in a pension accounting change," Satoru Takada, an analyst at TIW, a Tokyo-based research and consulting institute, said ahead of the earnings release.

"But it displayed a good performance in China and Indonesia while showing steady sales in North America," he said.

While North American vehicle sales declined in the quarter year on year to 481,000 from 510,000, revenue rose slightly to 2.13 trillion yen from 2.06 trillion yen.

Takada added that the foreign exchange situation is "a key factor" for automakers.

"Current levels are relatively positive for the Japanese auto industry," he said.

Although the yen has strengthened slightly in past days, it remains weak against the dollar over recent years.

A stronger Japanese yen can hurt carmakers by eroding the value of overseas profits when repatriated.

On Thursday, Nissan reported a drop in quarterly net profit, hit by higher costs and weak sales in key markets, although it left its annual forecasts unchanged.